Wednesday, December 27, 2023

UNINTENDED CONSEQUENCES...PROBABLY

By Bob Walsh

 

How much does a pizza delivery driver make


There will be a whole lot of unemployed pizza delivery drivers in the formerly great state of California next week.  The minimum wage in CA goes up to $20 per hour come 01-01-24.  Pizza Hut is therefore waving byebye to 1,200 delivery drivers.  If for some reason you are demented enough to want a Pizza Hut pizza you will have to go get it yourself, or pay a delivery service.  

It is being speculated that this is just the first and most open move in this direction.

There is a difference between "static modelling" and "dynamic modelling."  Static modelling presumes that you can make one specific change in a system and that this change will produce zero further changes within the system.  That is, of course, seldom actually true.  Increasing your labor cost about 20% overnight will NOT necessarily result in all of the effected employees being retained with a 20% pay raises.  In fact probably it won't.  Probably you will have to shed some employees.  The people who write the laws don't believe this will happen, despite clear proof to the contrary.  

Welcome to the real world.

1 comment:

Anonymous said...

Tipping is out of control. I was asked if I wanted to tip the sandwich preparer at a Subway. I refused and cancelled my order. I'm a good tipper in restaurants when seated and waited on by a server. I will tip a craps table dealers, barber, taxi driver, ride service, Bellman, masseuse, car wash worker, food deliverer and casino floor drink waitress and a good attentive bartender. I will not tip the cook or a server at a fast food drive up window. I will even tip a person who prepares my omelet and an omelet station. However, I refuse to be intimidated for a tip before my food arrives or asked to answer whether I want to tip an unknown person on a credit card machine while placing my order. That being said, I'm not against tipping but prefer to tip with cash.

$20 an hour minimum wage? I wouldn't tip a zinc penny.